CFA Practice Question

There are 546 practice questions for this topic.

CFA Practice Question

Which momentum indicator is unbounded?

A. Relative strength index
B. Stochastic oscillator
Correct Answer: C

Because MACD is unbounded (it does not have any upper or lower limits to bind its movement), it is not particularly useful for identifying overbought and oversold levels.

User Contributed Comments 2

User Comment
gill15 ROC and MACD fluctuate above and below zero
shann680 MACD divergence is v helpful in identifying oversold/bought levels!
You need to log in first to add your comment.